ICFAI CFA Group F Exam Paper

Will you please provide the paper of ICFAI CFA Group F Exam?

[Arun Vats]

Here I am providing the list of few questions of ICFAI CFA Group F Exam which you are looking for .

1. As per exchange control regulations, licenses are issued for import of goods into India for ______ value.
(a) FOB
(b) C&F
(c) CIF
(d) FOB value plus 21.125%
(e) Cost plus 20%.

2. Which of the following is not an external hedging technique?
(a) Forwards
(b) Exposure netting
(c) Futures
(d) Options
(e) Money markets.

3. The system in which the exchange rates are determined by the demand and supply position for the currencies in
the foreign exchange market is known as
(a) Target zone arrangement system
(b) Crawling peg system
(c) Fixed exchange rate system
(d) Floating exchange rate system
(e) Currency board system.

4. Dumping means
(a) Destroying the goods to create scarcity
(b) Throwing the goods into the sea to create scarcity
(c) Donating the goods to least developed countries as charity
(d) Selling the goods at actual cost
(e) Selling the goods below the cost.

5. An exporter requested his banker to quote a rate for his receivable of $10,000. The banker agrees to quote the
rate relying on the inter bank rate for dollar that is Rs.48.75/77$ by loading a margin of 0.15% on the rate. The
rate quoted by the banker is
(a) Rs.48.68/$
(b) Rs.48.70/$
(c) Rs.48.82/$
(d) Rs.48.84/$
(e) Rs.48.83/$.

6. Which form of purchasing power parity refers to the Law of One Price?
(a) Numerical form
(b) Relative form
(c) Accounting form
(d) Absolute form
(e) Expectations form.

i. e x e
7. Under which of the following International Commercial Terms (INCOTERMS), the seller places the goods at his
premises at the disposal of the buyer or any other named place, say factory, warehouse etc?
(a) Cost and Freight (CFR)
(b) Carriage paid to (CPT)
(c) Ex works (EXW)
(d) Free carrier (FCA)
(e) Free on Board (FOB).

8. For compilation of Balance of Payment(BoP) India follows the principles laid down by the
I. The Income Tax Act.
II. The Foreign Trade (Development and Regulation) Act.
III. The IMF manual.
IV. The Foreign Exchange Management Act.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (IV) above
(e) Both (II) and (IV) above.

9. Which of the following statements is true when a country has a current account surplus in its balance of
payment account?
(a) Country is not a net lender to the rest of the world
(b) Country would need not borrow from outside to build-up its productive capabilities in order to achieve
high rates of growth
(c) Country is living above its means
(d) It is not beneficial for a developing country
(e) Country is consuming as much as it is producing.

10.Consider the following rates quoted in Chennai forex market:
Rs./€ : 62.36/38
€/£ : 1.1761/63
The synthetic quotes of Rs./€ are
(a) 73.34/73.38
(b) 53.02/53.03
(c) 0.0301/0.0313
(d) 53.80/53.84
(e) 73.75/73.78.

11.If there are no barriers to trade among the member countries and the external barriers for non-members are also
common, then this form of trading block falls under
(a) Free trade area
(b) Common Market
(c) Customs Union
(d) Economic Union
(e) Autarky.

12.Which of the following is false about a forward contract in foreign exchange?
(a) A forward contract can be either outright forward or option forward
(b) It is an agreement where the parties agree to buy or sell a currency at a future date
(c) The future date should be beyond one month from the date of contract
(d) The price of the currency is fixed at the time of contract
(e) The terms of delivery and payments are also fixed at the time of contract.

13.Bank of Misr (BOM), Cairo is having an euro currency account with Commerz Bank, Frankfurt. When Citizens
Bank of Canada, Vancouver refers to this account of BOM, while corresponding with Commerz Bank, Frankfurt,
it would refer as
(a) Shadow account
(b) Vostro account
(c) Nostro account
(d) Loro account
(e) Mirror account.

14.Economic exposure can be managed by which of the following techniques?
I. Forwards.
II. Futures.
III. Market Selection.
IV. Product Mix.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (I) and (IV) above
(d) Both (II) and (III) above
(e) Both (III) and (IV) above.

15.Consider the following:
One year euro interest rate is 5% (compounded quarterly)
One year dollar interest rate is 3% (compounded quarterly)
The Spot exchange rate is $1.2788/€.
According to interest rate parity, the 6 months forward exchange rate is
(a) $1.2725/€
(b) $1.2915/€
(c) $1.2824/€
(d) $1.2919/€
(e) $1.3077/€.

16.As per the exchange control regulations, an exporter is required to submit all the shipping documents
evidencing export to an authorized dealer within
(a) 3 days from the date of shipment
(b) 7 days from the date of shipment
(c) 15 days from the date of shipment
(d) 21 days from the date of shipment
(e) 30 days from the date of shipment.

17.The letter of credit which can be cancelled by the issuing bank at the request of the applicant without the consent
of the beneficiary is called
(a) Deferred Payment letter of credit
(b) Transferable letter of credit
(c) Non-transferable letter of credit
(d) Revolving letter of credit
(e) Revocable letter of credit.

18.Which of the following advances is a pre-shipment credit?
(a) Advances against receivables from the Government of India
(b) Advances against retention money relating to exports
(c) Advances against approved deemed exports
(d) Packing credit
(e) Advance against export bills.

19.Which of the following statements is true in case of a direct quote?
(a) Exchange margin is to be added to the bid rate and ask rate
(b) Exchange margin is to be added to the bid rate and deducted from the ask rate
(c) Exchange margin is to be deducted from the bid rate and the ask rate
(d) Exchange margin is to be deducted from the bid rate and added to the ask rate
(e) Exchange margin is to be added to the bid rate only.

20.Consider the following rates:
Rs./$ Spot 45.98/45.99
3 months 22/21
The annualized percentage discount on dollar for 3 months will be
(a) 1.57%
(b) 1.24%
(c) 1.73%
(d) 1.74%
(e) 1.87%.

21.Which of the following theories states that new products are developed as a result of technological innovations
and trade patterns are determined by the market structure and the phase in a new product’s life?
(a) Theory of Comparative Advantage
(b) Theory of Absolute Advantage
(c) Imitation Gap Theory
(d) International Product Life Cycle Theory
(e) Heckscher-Ohlin Model.

22.The exposure that arises from the need to convert values of assets and liabilities denominated in a foreign
currency into the domestic currency is called
(a) Transaction exposure
(b) Transformation exposure
(c) Translation exposure
(d) Operating exposure
(e) Financial exposure.

23.When ‘Suzuki’ a Japanese company is floating USD denominated bonds in New York, the bond is known as
(a) Samurai bond
(b) Shogun bond
(c) Shibosai bond
(d) Yankee bond
(e) Geisha bond.

24.In balance of payments statement, short term inflows and outflows of capital are recorded in
(a) Current account
(b) Capital account
(c) Official reserves account
(d) Errors and omissions account
(e) Transfer payments account.

25.An Indian company based in Mumbai needs short term funds of Rs.50 million for a period of 3 months. The
company collected the following information from its banker
Spot :Rs/$ : 45.90/92
3 months forward : 15/17 paise
If the company decides to borrow dollar for the purpose, the amount of dollars required to borrow is
(a) $10,88,850
(b) $10,89,325
(c) $10,85,776
(d) $10,84,834
(e) $10,85,305.

26.Which of the following is not correct?
(a) Important function of the IMF is to provide reserve credit to the member countries facing temporary
balance of payment problem
(b) Oil facility is a type of IMF lending
(c) International Development Association (IDA) endeavors to finance those projects in developing
countries, which may not be financially profitable
(d) International Finance Corporation (IFC) insists on government guarantee for financing
projects
(e) IFC helps the development of private sector in different countries.

27.Which of the following is true under a currency board system?
(a) The interest rates are automatically set by the market mechanism
(b) When there is a higher demand for the anchor currency, the reserves with the currency board gets
enhanced
(c) Lending to either the government or the domestic banks by the currency board is
allowed
(d) The board can act as the lender of the last resort
(e) Exchange rates are unstable.

28.Which of the following statements is not true as per the exchange control regulations governing imports?
(a) Normally remittances against imports shall be completed within 6 months from the date of shipment
(b) Foreign exchange for import payment can be sold to persons in Nepal or Bhutan
(c) Goods imported from Nepal or Bhutan against Letter of Credit (LC), payment will be made in Indian
Rupees and LC will be treated as Domestic LC
(d) Authorized dealers can deliver the import documents to the holders of letter of authority
(e) An importer shall hold an Import-Export Code Number allotted by Director General of Foreign Trade.

29.If a country has a Balance of Payments surplus and the Central Bank is following floating exchange rate system,
then the foreign exchange rate for its currency would
(a) Rise, its exports would increase and its imports would decrease
(b) Rise, its exports would decrease and its imports would increase
(c) Fall, its exports would increase and its imports would decrease
(d) Fall, its exports would decrease and its imports would increase
(e) Be stable.

30.Under which of the following facilities IMF extends help to prevent countries, suffering due to price shocks?
(a) Extended Facility
(b) Standby arrangement
(c) Buffer Stock Financing Facility
(d) Compensating Financing Facility
(e) Supplementary Financing Facility.

For more questions , here is the attachment

[Anand01]

Can you please provide latest solved question papers of ICFAI CFA Group F subjects, the subjects are MUTUAL AND OTHER FUNDS and PROFESSIONAL ETHICS AND CASE STUDIES